Examlex

Solved

Assume Kara's Budget Constraint Is Represented by Line a in the Graph

question 108

Multiple Choice

  Assume Kara's budget constraint is represented by line A in the graph shown,and that her income to spend on these two items is $24.What would cause her budget constraint to move to B? A)  The price of movie tickets falls to $4. B)  The price of movie tickets increases to $4. C)  The price of movie tickets falls to $6. D)  The price of movie tickets increases to $6. Assume Kara's budget constraint is represented by line A in the graph shown,and that her income to spend on these two items is $24.What would cause her budget constraint to move to B?


Definitions:

Equity Securities

Financial assets representing ownership interest in an entity, such as stocks, which provide the holder with voting rights and potential dividends.

Stock Options

Contracts that grant the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific time frame.

Available-for-Sale

Available-for-sale refers to financial assets that are not classified as held-for-trading or held-to-maturity, and are recorded at fair value with changes recognized in other comprehensive income.

Related Questions